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Portugal

Portuguese Republic

Local long form: Republica Portuguesa

Cultural Note

Although Portuguese is related to Spanish, and many Portuguese understand Spanish, foreigners should never presume that knowledge of Spanish is sufficient to do business in Portugal. The Portuguese consider it insulting when foreigners constantly try to communicate in Spanish.

Portugal

3 What’s Your Cultural IQ?

1.Like Rome, Lisbon—the capital of Portugal—was built on seven hills near a river. Tradition holds that Rome was founded by Romulus. Which mythological character is credited

with founding Lisbon?

 

a. Aeneas

c. Bacchus

b. Apollo

d. Ulysses

ANSWER: d. According to local legend, Ulysses founded Lisbon (which the Romans called Olisipo) during his wanderings after the fall of Troy.

2.True or False? Geographically speaking, Portugal is not a Mediterranean country.

ANSWER: True. Portugal’s only coastline is on the Atlantic Ocean. It is not on the Mediterranean Sea at all. However, its culture has much in common with other Mediterranean nations.

3.The fado is the most important indigenous style of music in Portugal. True or False? The fado is a happy, celebratory harvest song associated with the Portuguese countryside.

ANSWER: False. The fado is associated with urban life and is invariably melancholy and wistful.

Cultural Note

“God gave the Portuguese a small country as a cradle but all the world as their grave.”

—Jesuit priest Antonio Vieira (1608–1697), referring to the all-too-common fate of Portuguese explorers and colonizers.

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3 Tips on Doing Business in Portugal

Portugal was a highly stratified society for hundreds of years, and hierarchy remains important in the business climate. If an owner of a firm basically runs the company for his own benefit, that is accepted as natural. The owner can use it as an employment vehicle for members of his family or friends, or dispose of the firm as he wishes.

This emphasis on social and business positions helps explain why it is vital to develop contacts and relationships with Portuguese executives. When the network is open, business is done.

Women should be aware that machismo is a cultural norm in Portugal. Be certain to present a professional, capable image at all times, and do not be surprised if your Portuguese contacts consistently look to the men on your team for answers—even if you are the senior executive at meetings. Resolve this problem before the first meeting by briefing your male employees; to confirm your position, they should defer to you during discussions, and reinforce your opinions.

Cultural Note

Personal honor has historically been considered supremely important. Traditionally, one’s honor could be lost not only through one’s own actions, but through the actions of one’s family as well. Challenges to a person’s honor had to be addressed immediately. Even humor at someone’s expense can still elicit an angry response. Naturally, these traditions evolved in small communities where everyone knew each other and extended families lived together. They are less applicable now in the anonymity of urban life.

3 Country Background

History

Over the course of history, Portugal’s coastline has been populated by a succession of cultures. Ancient Phoenicians, Carthaginians, and Greeks preceded the Romans, who conquered the region in 27 b.c. Subsequently, the Visigoths and the Moors governed until the twelfth century. In 1140, Portugal became an independent nation under King Alfonso Henriques. During the fourteenth and fifteenth centuries, Portuguese explorers immensely expanded their empire. Both Spain and France temporarily ruled Portugal before the Republic of Portugal was established in 1910.

Type of Government

Portugal

From 1974 to 1976, Portugal underwent a nearly bloodless transition from an authoritarian government to a constitutional democracy. Today, Portugal is a multiparty parliamentary democracy.

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The parliament is known as the Assembly of the Republic. It is unicameral, and its members are elected by direct universal suffrage. Deputies serve for four years. The president is the chief of state, while the prime minister is the head of the government.

The 1976 constitution was revised in 1982 and 1989. It placed the military under civilian control and eliminated the Marxist rhetoric and socialist goals of the first document. This led to the privatization of many sectors of the economy, such as the financial and telecommunications industries. It also called for increasing decentralization of the administration. Portugal joined the European Community (now the European Union) in January of 1986. Membership stimulated liberalization of economic policy, which resulted in one of the best economic performances and one of the lowest unemployment rates in the 1990s. Performance diminished in recent years, partly based upon a poor educational system.

For current government data, check with the Embassy of Portugal at www.portugal.org.

Language

Portuguese, a Romance language, is spoken throughout Portugal. Outside Portugal, (i.e., in Brazil) the language has altered somewhat due to the influence of other language and speech patterns. Ethnologue.com has categorized six different languages spoken in Portugal.

Portugal

Cultural Note

Many people who have written about Portuguese characteristics mention several terms: a sense of saudade (the sad knowledge that one is living in diminished times); siso (which is similar to a sense of prudence), and loucura (which would almost be the opposite of prudence—more like “excess”). While these terms are often quoted and may apply to many Portuguese, viewpoints are changing as the economy improves, and a younger generation looks to the future more than to the memories of the country’s glory days.

The Portuguese View

As a colonial power, Portugal retained its colonies far longer than most other European powers. Italy, Germany, and Belgium held their colonies for less than a century; England, the Netherlands, and France held most of theirs for less than 200 years. Spain lost Latin America after about 250 years, and the Philippines after about 330. But Portugal’s final African colonies were lost only after some 400 years of contact! This may help explain the Portuguese melancholy for past glories.

Portugal, like Spain, emerged from decades of repression under a dictator in the 1900s. This suddenly gave social and political freedom to a tightly controlled society. A rising standard of living (in large part due to Portugal’s joining the EU) has generated more economic choices and opportunities, and the Portuguese finally have personal and political freedoms.

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This change has lightened the saudade attitude that has been referred to in literature about Portugal. Portuguese culture is slowly changing with developments in their economy and technology.

There is a Portuguese tradition of delegating hard or distasteful labor to others. They do not consider work to be the purpose of living and will not generally dwell long on conversations about their jobs.

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Know Before You Go

Portugal’s Azores are subject to severe earthquakes. Water pollution is a serious problem in the coastal areas and has affected the fish populations.

Smoking is still common.

Portugal does have a drug problem since it is a gateway country for Latin American cocaine and Southwest Asian heroin entering the European market (especially from Brazil); it is reported to be a transshipment point for hashish from North Africa to Europe.

3 Cultural Orientation

Cognitive Styles: How the Portuguese Organize and Process Information

In Portugal, information is readily accepted for the purpose of discussion, but negotiations may be extensive with little movement from the initial perspective. Teaching is formal and innovation is discouraged, which fosters a subjective, associative mode of information processing. Because interpersonal relationships are of major importance, Portuguese are more inclined to maintain a relationship than to abide by rules and laws.

Negotiation Strategies: What the Portuguese Accept as Evidence

Truth is found in the personal feelings of those involved in a situation. While faith in the ideologies of humanitarianism and religion may influence their perspective, the Portuguese will not often let objective facts unduly sway their opinions.

Value Systems: The Basis for Behavior

The Portuguese’s value systems are still in transition from the old authoritarian political and economic systems to the present democratic and capitalistic systems. The following three sections identify the Value Systems in the predominant culture—their methods of dividing right from wrong, good from evil, and so forth.

Locus of Decision-Making

Individuals are responsible for their decisions, but they are usually subject to the pressures of the family or the working group. The elite control all seats of power, intermarry for stability, and rely on extended kinship ties for control. One’s self-identity comes from the history of

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one’s extended family and one’s position in society. A person’s connections are much more important than his or her expertise when finding a job.

Sources of Anxiety Reduction

Most Portuguese are members of the Catholic Church, and its teachings and social structure provide stability and security to the individual. Friendship and patronage networks are the cement of Portuguese society and the primary means of communication within and between social classes. The family is the primary unit of social interaction, and it is an individual’s role in the social structure and the presence of the extended family that give a sense of stability and security to life.

Issues of Equality/Inequality

There is ethnic and linguistic homogeneity in Portugal and this brings a sense of equality to the people. Although there are extreme contrasts between rich and poor, with a small upper class, a larger middle class, and a massive lower class, in general people feel that they are all equal because they are all unique. Failures are often attributed to external circumstances rather than personal inadequacies. It is a strongly macho society.

Portugal

3 Business Practices

Punctuality, Appointments, and Local Time

Punctuality is not a high priority in Portugal. Although foreigners are always expected to be on time, your Portuguese counterpart could easily be thirty minutes late.

This indigenous casual attitude toward punctuality is affected by rank. A person of high social standing has the option to show up late to a meeting with a person of lower rank. Prior appointments are necessary.

Remember that many Europeans and South Americans write the day first, then the month, then the year (e.g., December 3, 2010, is written 3.12.10 or 3/12/10). This is the case in Portugal.

Lunch has traditionally been from noon to 2:00 p.m.; however, businesspeople may take shorter lunches. Try to avoid appointments between noon and 3:00 p.m.

Portugal is the same as Greenwich Mean Time (G.M.T.), or five hours ahead of U.S. Eastern Standard Time (E.S.T. +5).

Negotiating

Establishing a strong rapport through constant personal contact is essential.

Emphasize your commitment to your clients; frequent visits are highly recommended. Do not expect negotiations to proceed at a rapid pace.

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Persistence and patience are vital. Nothing is accomplished quickly in Portugal. The Portuguese do not consider themselves slaves to the clock. Appreciate their viewpoint, and you will have little difficulty conducting business there.

After-sale service of your product is necessary. You must prove to your clients that this support will be provided.

Good topics of discussion are the family, the excellent food, positive aspects of Portuguese culture, and personal interests.

Avoid discussing politics and government.

Avoid sounding too curious about your associates’ personal matters.

Many Portuguese study British English, so avoid idioms from the United States.

Business cards are used. It is best to have yours translated, so that English is on one side and Portuguese on the other.

Present your business card to your colleague with the Portuguese side facing him or her.

Business Entertaining

Lunch is the main meal of the day and is eaten at approximately 1:00 p.m. Business lunches are common.

Wine is generally the typical beverage consumed with meals.

If you are invited out to lunch or dinner, be certain to reciprocate; however, do not mention that you “owe” the other person the favor.

Women eating alone in a restaurant may be approached unless they obviously take work with them.

The fork is held in the left hand and the knife remains in the right hand.

Hands should not be kept in the lap at the table.

It is impolite to eat while walking down the street.

People often meet at tea houses (casas de chá).

Protocol

 

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Greetings

 

A warm, firm handshake is the standard greeting.

 

For social occasions, men greet each other with an embrace.

 

Women kiss on both cheeks when greeting each other.

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The Portuguese tend to be less physically demonstrative in public than Spaniards.

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Titles/Forms of Address

The order of names is first name followed by the surname. This is the reverse of their neighbors in Spain.

Use of first names has traditionally been reserved for friends, but this is changing.

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Some professionals are introduced as “Doctor” or “Doctora” even if they are not officially doctors.

Gestures

“Come here” is indicated by waving the fingers or hand, with the palm facing down.

It is considered very impolite to point.

To call a waiter to your table in a restaurant, simply raise your hand.

Gifts

It is not appropriate to give a business gift at the first meeting.

When you give a business gift, do not include your business card; instead, include a handwritten card.

Do not make your gift too extravagant or too cheap.

The gift should not be a vehicle for your company logo.

It is not necessary to bring a gift when you are invited to a home. Instead, you may invite your hosts out at a later date.

If you do wish to give something to your Portuguese hosts, fine chocolates or other candy is the preferred gift.

If you send flowers to your Portuguese hosts, have them sent ahead, and do not send thirteen of them, as that number is considered bad luck. Do not send chrysanthemums or roses. Do make sure that the bouquet is impressive; a gift of cheap flowers will have a negative effect.

Dress

Conservative, formal dress is essential. Portuguese men may wear jackets and ties even when going to the movies!

Despite the hot Portuguese weather, men should not remove their jackets unless their Portuguese colleagues do so first.

Portuguese businesswomen usually wear subdued colors, so avoid the red power suit.

Cultural Note

“This is the story of heroes who, leaving their native Portugal behind them, opened a way to Ceylon, and further; across seas no man had ever sailed before. They were men of no ordinary stature, equally at home in war and in dangers of every kind: they founded a new kingdom among distant peoples, and made it great. . . .”

—The opening lines of “The Lusiads,” the classic epic poem of Portuguese exploration, written by Luis Vaz de Camões in 1572 (English translation by William C. Atkinson).